Indian Rupee is sinking now. Is India also sinking? It looks like. There is a shortage of Dollar reserves in India because there is a shortage in export from India. Mineral Ore is also stopped moving from Goa and this affected the constant flow of Dollars into the Coffers of India. Bangladeshi Taka, Philipino Peso and Pakistani Rupee as well as Sri Lankan fetch better rate than Indian currency. The demand for Indian products outside India is fallen while demand for outside products for India’s consumption is increased thereby Dollar reserves from India is flowing out.
Onion prices are gone up like that of many other products in India because there is a shortage of Onions cultivation in India. One reason for this is the shortage of Onions agricultural land which is taken over by the big builders to construct big buildings for commercial purpose. Another reason is this that there is a manpower shortage in Onions cultivation because farmers stopped farming since they got educated and diversified their profession to something else that fetch them better dividends.
Hence, there is a shortage of Onions in India whereby the sellers increase their prices which pinched Indian consumers financially. This forced the Indian government to import Onions from outside by paying Dollars from Indian reserves. This is just one example of one product Onions.
India needs Dollar currency to import important and key products from outside India, Oil import is one such key product which is very costly and India needs it in a very big quantity since India is the biggest consumer of imported Oil. This means India needs a very big amount of Dollars for this import. At the moment India is in short supply of Dollar reserves which is in high demand while Indian Rupee is become like a dirt, very cheap, nobody wants it because its market value is gone very low.
In view of this, India must make all out efforts to increase its exports to accumulate Dollars and not to sleep on this topic as it is done now. India is a mighty atomic power and industrial giant having a Harvard educated Finance Minister Chidambaram plus Premier Singh who is considered as one of the best economists in the world. What they are doing now to uplift Indian Rupee from totally drowning and thereby taking the country into the deep sea? What Congress government is doing now to eradicate the woes of the common men who are facing the price rise in India while Chidambarams & Sings are enjoying everything free of charge at the cost of tax payers’ money?
According to the available information there are billions of Dollars in black money kept in deposit in overseas banks by the corrupt Indian politicians illegally, this is the looted money from India. For example Rajas as Indian Minister signed a deal with one Arab country for an “X” amount to be paid to Indian government officially and above it, a certain percentage for him as commission which as per his instruction to be deposited by the Arab country in the personal account of Rajas in the foreign bank in dollar currency. This is a loot and this money is the looted Indian money deposited in overseas bank in Rajas’ account. It is in crores and not a small amount.
Sometime back a corrupt Goan politician came to Kuwait with an entourage of his family members and friends. This trip cost him about a crore of rupees which he collected in Kuwait from his friends in Dollars and ultimately the same he deposited in his personal account in Swiss Bank while its equivalent in Indian Rupees he paid to his friends in Goa. The money he paid in Rupees in Goa were the looted money from Goa thru kick-backs and commissions he received from the government contracts as a Minister in Goa.
It is a must now for Indian government thru legal process to bring back this money from overseas banks deposited there illegally thru corruption by the corrupt politicians. Social activist Anna Hazare was also stressing on this illegal money to bring back to India. It is Dollars that are very much required in India now to increase India’s quota of Dollars to overcome the Rupee downfall and thus save India’s economy.
According to my information, at the time of independence of India in 1947, the value of one Dollar was approximately equal to one Rupee. So why the Rupee has fallen so low now? Do we need British economists to stabilise Indian Rupee rate? If yes, let us call them back because Indian corrupt politicians are not interested in the well being of India. At least colonialist will do our job better.
Sometime back to stabilise its currency and economy, Cyprus Apex Bank sold a huge amount of its Gold reserves and accumulated big amount of Dollars. Can’t Indian Reserve Bank act similarly to get more and more Dolars?
It is a time now for top Indian economists especially for Indian Financé Minister to introduce strong measures to save Indian economy from collapsing.
A. Veronica Fernandes,
Kuwait.